The Finance MInister on Friday has asserted that she had made no change in personal income tax rates for the middle class on her announced budget but alerted a tax hike for the super rich.
I, therefore, propose to enhance surcharge on individuals having taxable income from Rs 2 crore to Rs 5 crore and Rs 5 crore and above so that effective tax rates for these two categories will increase by around 3 % and 7 % (percentage points) respectively,” she told the Lok Sabha in her 129-minute speech.
She has asserrted that people who are eraing high must contribute to the national development.
She has proposed that people who earn over Rs 2 crore should be required to pay higher taxes.
Sitharaman had started out indicating her direct tax proposals with a ‘thank you’ note and a parable. She gave the analogy of the elephant that would not enter the paddy field and trample the harvest if given a small amount of rice. The message to tax payers was also that they should pay their part else the government would have to move in. It would be counterproductive for the government too since “What it (elephant) eats would be far lesser than what it would trample over!”
Nirmala Sitharaman did not announce any changes to the income tax slabs for the middle class,
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